PowerHouse, Harrison Street Eye DFW Data Center

A joint venture between PowerHouse and Harrison Street has purchased a 50-acre site in Irving, Texas. Plans call for the construction of an almost 1 million-square-foot data center campus that will boast 200 MW of power at full build-out.

This marks the duo’s entrance in the Dallas-Fort Worth market and their sixth data center development.

Dubbed PowerHouse Irving, the campus is set to feature three powered shell data centers rising up to three stories, each with a 67 MW power load. Construction is expected to start early next year, with completion of the first powered shell set by the end of 2025.

Located at 111 Customer Way in the Las Colinas master-planned community, the campus will rise in the second-largest data center market in the country. Additionally, the site has immediate access to permanent power from an existing adjacent substation, serviced by Oncor.

PowerHouse’s growing data center inventory

PowerHouse Data Centers, a wholly owned division of American Real Estate Partners, currently has 30 facilities underway or in different planning stages, which will total 10.5 million square feet of data center space and more than 2.3 GW of power.

The company started with projects in Northern Virginia and is expanding in key markets across the U.S. Last month, PowerHouse and Harrison Street topped out ABX-1, their first data center in NoVa. The 265,850-square-foot building will initially provide 60 megawatts, with plans to increase it to 80 megawatts of total available power.

In January, the duo also acquired the site for a 900,000-square-foot powered shell data center campus in Reno, Nev., its first such project outside Northern Virginia. The three-building development’s total value is estimated at $400 million.

Data centers are becoming investors’ favorites

According to DLA Piper’s 2024 Real Estate State of the Market Survey, enthusiasm about data centers is picking up, with 53 percent of survey respondents mentioning it as the most attractive asset class, up 21 percent from last year.

Additionally, there were 27.4 million square feet of data centers under construction as of March, with an additional 33.5 million square feet in planning stages, a CommercialEdge industrial report shows. In 2023, construction starts increased to 14.2 million square feet, up from an average of 10 million square feet in previous years.

In April, Vantage Data Centers obtained a $3 billion green loan for the expansion of its Northern America footprint, bringing its 2024 funding to $10 billion. Plans call for the construction of VA3, a 288-megawatt campus in Ashburn, Va.